Volvo 2008 Annual Report Download - page 145

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141
Financial information 2008
AB Volvo SEK M
Retained earnings 10,853
Income for the period 2008 16,825
Total 27,678
The Board of Directors and the President propose that the above
sum be disposed of as follows:
SEK M
To the shareholders, a dividend of
SEK 2.00 per share 4,055
To be carried forward 23,623
Total 27,678
Proposed disposition of unappropriated earnings
The record date for determining who is entitled to receive dividends is
proposed to be Monday, April 6, 2009.
In view of the Board of Directors’ proposal to the Annual General
Meeting to be held April 1, 2009 to decide on the distribution of a
dividend of SEK 2.00 per share, the Board hereby makes the following
statement in accordance with Chapter 18, Section 4 of the Swedish
Companies Act.
The Board concludes that the Company’s restricted equity is fully
covered after the proposed dividend. The Board further concludes
that the proposed dividend is justifi able in view of the parameters set
out in Chapter 17, Section 3, second and third paragraphs of the
Swedish Companies Act. In connection herewith, the Board wishes to
point out the following.
The proposed dividend reduces the Company’s solvency from 63.8
per cent to 61.1 per cent and the Group’s solvency from 22.7 per cent
to 21.9 per cent, calculated as per year end 2008. The Board of Dir-
ectors considers this solvency to be satisfactory with regard to the
business in which the Group is active.
According to the Board of Directors’ opinion, the proposed dividend
will not affect the Company’s or the Group’s ability to fulfi l their pay-
ment obligations and the Company and the Group are well prepared to
handle both changes in the liquidity and unexpected events.
The Board of Directors is of the opinion that the Company and the
Group have capacity to assume future business risks as well as to
bear contingent losses. The proposed dividend is not expected to
adversely affect the Company’s and the Group’s ability to make further
commercially justifi ed investments in accordance with the Board of
Directors’ plans.
In addition to what has been stated above, the Board of Directors
has considered other known circumstances which may be of import-
ance for the Company’s and the Group’s fi nancial position. These cir-
cumstances include the prevailing fi nancial crisis and the expected
future weaker earnings trend.
If the Annual General Meeting resolves in accordance with the
Board of Directors’ proposal, SEK 23,623 M will remain of the Com-
pany’s non-restricted equity, calculated as per year end 2008.
The Board of Directors has the view that the Company’s and the
Group’s shareholders’ equity will, after the proposed dividend, be suf-
fi cient in relation to the nature, scope and risks of the business.
Had the assets and liabilities not been estimated at their market
value pursuant to Chapter 4, Section 14 a of the Swedish Annual
Accounts Act, the company’s shareholders’ equity would have been
SEK 50,659,436.00 more.
The Board of Directors and the President certify that the annual fi nan-
cial report has been prepared in accordance with generally accepted
accounting principles and that the consolidated accounts have been
prepared in accordance with the international set of accounting stand-
ards referred to in Regulation (EC) No 1606/2002 of the European
Parliament and of the Council of 19 July 2002 on the application of
international accounting standards, and give a true and fair view of the
position and profi t or loss of the Company and the Group, and that the
management report for the Company and for the Group gives a fair
review of the development and performance of the business, position
and profi t or loss of the Company and the Group, and describes the
principal risks and uncertainties that the Company and the companies
in the Group face.
Göteborg, March 4, 2009
Finn Johnsson
Board Chairman
Peter Bijur
Board member
Tom Hedelius
Board member
Philippe Klein
Board member
Leif Johansson
President and CEO of the
Volvo Group and
Board member
Louis Schweitzer
Board member
Ravi Venkatesan
Board member
Lars Westerberg
Board member
Ying Yeh
Board member
Martin Linder
Board member
Olle Ludvigsson
Board member
Johnny Rönnkvist
Board member
Our audit report was issued on March 4, 2009
PricewaterhouseCoopers AB
Göran Tidström
Authorized Public Accountant
Lead Partner
Olov Karlsson
Authorized Public Accountant
Partner